Gold Forecast Bright on Weak USD; Silver Eyes Multi-Year High

Look for bullish gold and silver prices amid the weakening US dollar.

  • gold price The advanced action was the fourth week in a row as Treasury yields fell.
  • silver price soared to its highest level in years amid US dollar Infrastructure Negotiation Weakness
  • The gold and silver outlook remains constructive as the Fed remains committed to policy.
  • check our education center or read the difference between gold vs bitcoin

Precious metals such as gold and silver expanded last week. Gold rose 1.5 percent to $1,905/ounce, while silver rose 1.9 percent to $28.00. This is likely to follow the continued weakening of the US dollar and the face of yield pressure. of the Treasury due to the Fed’s passive monetary policy Trends for gold and silver benefit from FOMC undermining officers Discussion taper As they argue, recent inflation pressures are “mostly temporary.”

Gold Price Chart: Daily Time Frame (14 December 2020 to 28 May 2021)

Gold Price Chart Forecast

chart by @RichDvorakFX created using TradingView

With real inflation rising in the near term But not enough to guarantee the Federal Reserve’s policy response, Treasury yields and the US dollar reversed. Gold price movements have skyrocketed in reverse. The uptrend behind gold is likely to persist as long as the Fed maintains its accommodative stance and continues to slow down lower asset purchase talks.

Gold prices could hit all-time highs if the US dollar weakens further and Treasury yields expand. not to mention Major cryptocurrencies like Bitcoin In the face of heavy late selling pressure, investors may look to traditional anti-future assets such as gold and silver. However, if the U.S. dollar recovers sharply, it is likely in line with soaring Treasury bond yields driven by market pricing under threat from the Fed. This could have a negative effect on gold prices and break the latest hike.

Silver Price Chart: Weekly Time Frame (06 Nov 2017 to 28 May 2021)

Silver Price Chart Forecast

chart by @RichDvorakFX created using TradingView

Silver price movements also benefited from weaker Treasury yields and a weakening dollar. In fact, next month’s silver futures contracts are at their highest weekly close since March 2013. The latest strength of silver may come from President Biden’s touting a $2 million ‘green’ infrastructure proposal. million dollars and $6 trillion budget forecasts as well. However, rising yields and the US dollar are likely to put pressure on silver prices.

Looking to the week ahead, gold and The volatility of money may Increase the risk of high-impact events caused by the monthly release of non-farm payrolls. A better-than-expected employment report in particular could see the US dollar and yield higher yields that could result in lower precious metals. On the other hand, gold and silver prices may benefit from another round of disappointment. NFP Data like this should support the Fed doves argument.

— written by Rich Devo Love, analyst for DailyFX.com

connect with @RichDvorakFX on Twitter for real-time market insights.

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